Case study on Sovereign Debt (Argentina)

[GPD]

Latest update on the default...

Argentina's YPF says its assets can't be embargoed by country's creditors

BUENOS AIRES - Argentina's state oil producer, YPF, said on Saturday that since it is an "independent" company its assets cannot be embargoed by so-called holdout investors who are demanding full payment following the country's massive 2002 bond default.

The 2nd U.S. Circuit Court of Appeals ruled on Wednesday that Argentina could not continue to pay creditors who agreed to restructure their bonds after its 2001-02 default on $100 billion in debt unless it also paid $1.33 billion to the holdouts demanding full payment.

"YPF is an independent company and is governed as such in accordance to law. Its assets don't belong to the Republic of Argentina, and as such cannot be embargoed by the Republic of Argentina's creditors," the oil firm told Reuters.
...
http://www.todayonline.com/business/arge...-creditors

If Argentina has something like CPF, can it be embargoed?

[CityFarmer]

It is a delay tactic...

Argentina seeks U.S. court stay to avoid new debt crisis

BUENOS AIRES - Argentina asked a U.S. judge on Monday to issue a stay of his ruling against the country in its case against "holdout" creditors, as it sought to avoid a new default that would further punish an economy already slipping into recession.

The move is the latest twist in a 12-year-old battle with investors who refused to take part in bond restructurings after Argentina failed to pay about $100 billion of debt in 2002.

Without a stay on a ruling by U.S. District Judge Thomas Griesa, Argentina would be legally barred from making a June 30 coupon payment on its restructured bonds unless it pays $1.33 billion to holdouts seeking full payment of the debt they hold.

"We consider it essential that Judge Griesa issue a stay so that the republic of Argentina can continue paying the holders of restructured bonds," Economy Minister Axel Kicillof told reporters in Buenos Aires.
...
http://www.todayonline.com/business/arge...ebt-crisis

[specuvestor]

Latest update on the default...

Argentina's YPF says its assets can't be embargoed by country's creditors

BUENOS AIRES - Argentina's state oil producer, YPF, said on Saturday that since it is an "independent" company its assets cannot be embargoed by so-called holdout investors who are demanding full payment following the country's massive 2002 bond default.

The 2nd U.S. Circuit Court of Appeals ruled on Wednesday that Argentina could not continue to pay creditors who agreed to restructure their bonds after its 2001-02 default on $100 billion in debt unless it also paid $1.33 billion to the holdouts demanding full payment.

"YPF is an independent company and is governed as such in accordance to law. Its assets don't belong to the Republic of Argentina, and as such cannot be embargoed by the Republic of Argentina's creditors," the oil firm told Reuters.
...
http://www.todayonline.com/business/arge...-creditors

If Argentina has something like CPF, can it be embargoed?

They are trying to seize assets to be sold for US$. Nobody would be keen on Argentine Peso.

[CityFarmer]

Latest update on the default...

Argentina's YPF says its assets can't be embargoed by country's creditors

BUENOS AIRES - Argentina's state oil producer, YPF, said on Saturday that since it is an "independent" company its assets cannot be embargoed by so-called holdout investors who are demanding full payment following the country's massive 2002 bond default.

The 2nd U.S. Circuit Court of Appeals ruled on Wednesday that Argentina could not continue to pay creditors who agreed to restructure their bonds after its 2001-02 default on $100 billion in debt unless it also paid $1.33 billion to the holdouts demanding full payment.

"YPF is an independent company and is governed as such in accordance to law. Its assets don't belong to the Republic of Argentina, and as such cannot be embargoed by the Republic of Argentina's creditors," the oil firm told Reuters.
...
http://www.todayonline.com/business/arge...-creditors

If Argentina has something like CPF, can it be embargoed?

They are trying to seize assets to be sold for US$. Nobody would be keen on Argentine Peso.

I concur. May be a more likely target should be sovereign fund oversea investment, something like Temasek...

[specuvestor]

^^ Yes, onshore and offshore assets are very different. And it's not just about tax. That's why Thaksin did his Shin Corp transaction with Temasek offshore. There is an element of control and trail.

You are not going to be able to seize their assets in Argentina for example. You would be lucky if you are not personally harmed or disadvantaged like during the Dubai fiasco and the current Mongolian situation.

It's not just about figures and laws which Singaporeans are too accustomed to take it for granted that it is universal.

[CityFarmer]

Update on the case study.

Argentina wants bond payment unfrozen if debt talks to go on

BUENOS AIRES - Argentina will press a U.S. judge to unfreeze a payment to holders of the country's restructured debt as a condition for negotiating with a group of New York hedge funds suing for full repayment, a government official said on Wednesday.

Latin America's No. 3 economy has been pushed to the brink of a new default by a string of U.S. court decisions that have forced it to negotiate with "holdout" investors who declined to restructure their bonds after the country's 2002 debt crisis.

More than 92 percent of the country's investors agreed to receive less than 30 cents on the dollar in bond restructurings carried out in 2005 and 2010.

The holdouts rebuffed those terms and want 100 cents on the dollar, but say they are willing to negotiate.
...
http://www.todayonline.com/business/arge...t-talks-go

[CityFarmer]

After the US govt officially "urging", Argentina govt finally complies, and sending official for negotiation, and foregoes the previous "pre-condition"...

Argentina to send government officials to meet mediator in debt case

BUENOS AIRES - The U.S. court-appointed mediator in Argentina's battle with holdout investors in its debt said on Thursday the country's lawyers had confirmed that a group of government officials would travel to New York to meet him on July 7.
...
http://www.todayonline.com/business/arge...-debt-case

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U.S. urges Argentina to find solution with holdout investors

WASHINGTON - The United States on Thursday urged Argentina to negotiate a solution with holdout investors after a string of U.S. court decisions that have pushed the country to the brink of default.

Argentina has until the end of July to settle with creditors who refused to accept the terms of past bond restructurings.

If it fails, the country -- already grappling with recession, one of the world's highest inflation rates and dwindling foreign reserves -- risks tumbling into its second sovereign debt default in 12 years.
...
http://www.todayonline.com/business/us-u...-investors

[specuvestor]

Argentina depends on US aids and trade. That is the key differentiator of why US "urging" works.

Try doing that with Russia

Follow the gravy train and you'll see where the strings lead to

[CityFarmer]

Similar advertisement to seek public approval is disallowed in Singapore, once the case is in court, IIRC.

Argentina is losing in court, and now seeking support from public. An interesting move...

Argentina and holdout creditors flood papers in ad war

NEW YORK - The battleground between Argentina and its holdout creditors shifted from U.S. courts to the court of public opinion as both sides took out full-page advertisements to argue their cases in the world's major newspapers.

Just what can be gained from the ads, which appeared worldwide, remains to be seen given Argentina lost its legal case on June 16 when the U.S. Supreme Court declined to hear an Argentine appeal, letting stand a lower court's order that it pay holdout creditors $1.33 billion plus accrued interest.

Hundreds of thousands of dollars, perhaps over $1 million combined from both sides, has been spent on ads in the New York Times, the Wall Street Journal, the Financial Times and the Washington Post in the last three weeks.
...
http://www.todayonline.com/business/arge...ers-ad-war

[CityFarmer]

The "negotiation" continue...

Argentines, bond holdouts emerge from NY meeting, no resolution

NEW YORK - Argentine officials and the holdout investors it has battled for years over its catastrophic 2002 default met separately with a court-appointed mediator on Friday, emerging after five hours of discussions without a resolution.

This is the closest the two sides have come to a face-to-face negotiation, rather than just their lawyers battling it out before U.S. District Judge Thomas Griesa in New York.

"They each presented their positions to me, but not in the presence of the other side. No resolution has been reached. It is my hope that there will be future dialogue," Daniel Pollack, the Special Master appointed by the court to act as a mediator, said in a statement after the meeting.

Without a deal, Latin America's No. 3 economy risks tumbling into a new default as it battles a recession, one of the world's highest inflation rates and dwindling foreign reserves.
...
http://www.todayonline.com/business/arge...ng-witness